Up and at ’em, forex brothas! Today we’re lookin’ at these interesting triangle breakout patterns on USD/CAD and USD/JPY’s charts. Check it!
Remember that ascending triangle that we spotted last week? Well, it looks like the bulls came through! The pair encountered resistance at 1.3100, though, and it looks like it might make a trip back to the 1.3000 psychological handle.
Think we’re looking at a resistance-turned-support situation over here? 1.3000 is lining up with not only the previous resistance, but also the Fibonacci retracement areas as well as the 200 SMA on the 1-hour chart.
1.3000 is a good place to buy if you think that USD/CAD will make new 2018 highs over the next couple of days.
If you’re not convinced of more dollar gains, though, then you could also wait for a break below the trend line that we spotted and aim for the previous support around the 1.2800 levels.
Check out this potential breakout on USD/JPY! As you can see, the air is getting thin for both dollar bulls and bears as USD/JPY gets to the end of what looks like a descending triangle on the 4-hour time frame.
A bounce lower for the pair could force a retest of the 105.50 support and inspire a trip down to the 102.00 – 103.00 levels.
Before you place your short trades, though, remember that triangles like these could also break to the upside. If it breaks above the 200 SMA and gains momentum, then you might want to consider aiming for the 108.50 – 110.00 area.